Recent Trends and Future Challenges of Civil-Military Technology Cooperation in Korea

Faced with the persistence of global recession, leading countries have gradually cut their defense budgets and reduced demands for defense acquisition. The prolonged EU financial crisis and the US fiscal cliff slowed the rise in global economic growth; Western nations have continued to cut their military spending1) Against the backdrop of an economic slump, the major arms manufacturers such as Lockheed Martin, Boeing, and BAE are seeking ways to extend their market through the Civil Military Integration (CMI), cost cutting, and mergers. This trend is full of suggestions for the defense industry in South Korea. As the economic growth rate slows and the government investment reaches their limits, the CMI has attracted public attention to change the way of investment from conventional “government investment” into “private investment”. Therefore, the CMI can be a pragmatic choice in order to find a new growth engine and boost industrial competitiveness. It is expected to utilize the defense budget efficiently, vitalize an aggressive spin on/off, boost employment and improve the spread effect to enhance the quality of life